There’s a lot to think about when moving home. Money is one of them. Costs can start to add up when it comes to buying a home, the move itself, and readying your new home.
If you are moving home to fulfil work commitments, did you know that you may be able to claim relocation costs?
That’s what we’ll look at in this article; explaining how claiming relocation costs for your move works, and exactly what you can claim for.
How much can you claim?
If you move home because you are starting a new job, you can claim up to £8,000 in relocation costs tax-free in the UK.
You may also be able to claim relocation costs if you are being relocated by your current employer.
The costs will be reimbursed directly by your employer. They’ll be exempt from National Insurance and Income Tax, provided they meet HMRC’s requirements.
Our government has capped this tax-free relief at £8,000. Anything above this threshold will be taxable.
What qualifies for tax-free relief (up to £8,000)?
There are certain relocation expenses which qualify for tax-free relief. In the following scenarios, costs can be reimbursed by your employer without them paying National Insurance or Income
Tax. These include when you move as a direct result of starting a new job, changing job duties, or relocating for work, and when the new job is within a reasonable travel distance of your new home, but not your old one.
Costs will be incorporated within a set time around the move. A one-year period would be typical.
Examples of qualifying costs
HMRC allows a range of practical moving expenses. Types of expenditure may include:
Selling / buying property
Included here will be legal fees, estate agent fees and bridging loans, for example.
Moving belongings
Removal company costs, storage and insurance.
Travel & subsistence
Costs for finding your new home or the final journey.
New home setup
Costs here may include replacing curtains/carpets, connecting utilities and temporary accommodation.
What doesn’t qualify as a moving-related expense?
Not all moving-related expenses qualify for tax-free reimbursements. Purely personal costs such as mail redirection, mortgage interest, or council tax are excluded.
Making your move easier
Whether you’re relocating locally in Merseyside or moving further afield for work, trust a reliable Liverpool removal company with over 20 years’ experience.
Contact Merseyside Movers at enquiries@merseysidemovers.com or call our friendly team on 0151 546 3819.
